Jose M. Cruz (Cape Verde) University of Connecticut, Storrs, USA - PowerPoint PPT Presentation

Jose M. Cruz (Cape Verde) University of Connecticut, Storrs, USA Humanitarian Logistics: Networks for Africa Rockefeller Foundation Bellagio Center Conference M May 5 ‐ 9, 2008 8 Bellagio, Lake Como, Italy

O Outline of Presentation li f P i � CSR ‐ Definitions and Terminology f gy � Core CSR Issues � Africa’s Common Corporate Issues � � Africa’s Common Government Issues Africas Common Government Issues � Sustainable Development � CSR for Sustainable Development in Africa � CSR ‐ Multi ‐ Stakeholder Model l k h ld d l � Best practice considerations in CSR � Synergies from CSR y g f 2

CSR ‐ Definitions and Terminology CSR Definitions and Terminology � Business in the Community defines CSR as: ‘‘ a company’s positive impact on society and the environment, through its operations, products or services and through its interaction with key stakeholders such as employees, customers, investors, communities and p y , , , suppliers .’’ � Many terms used interchangeably Corporate social responsibility � � Corporate citizenship Corporate citizenship Social programs / social investments � Community outreach / social outreach � 3

CSR Stakeholders Current drivers Current drivers Current drivers Current drivers •Consumers •NGOs •Trade unions •Media •Shareholders •Risk reduction •Brand d •Reputation 4

Core CSR Issues Core CSR Issues 5

Africa’s Common Corporate Issues Africa s Common Corporate Issues � Difficult political and economic environments Corruption � Lack of transparency � Weak financial and banking systems, poor fiscal policy � Income inequality � � S Security concerns i � Significant poverty � High local unemployment g p y � Limited number of viable local organizations and companies � � Difficulties in working with local government agencies Difficulties in working with local government agencies � Limited tools for social programs � Vocal opposition by several international advocacy groups 6

Africa’s Common Government Issues Africa s Common Government Issues � Lack of institutional capacity within governments to manage the local natural resources In negotiations, is the playing field level for us? � Are we in a position to obtain the best deal possible for our � government? � � How do we protect our long term interests? How do we protect our long ‐ term interests? � How do we build up our local capacities (institutions, trained manpower) fast enough to manage our sector? � Will natural resources revenues increase the risk of political instability and civil unrest? � Will lack of resources increase the risk of political p instability and civil unrest? 7

Africa’s Common Government Issues, Cont. Africa s Common Government Issues, Cont. � Concerns about economic and social impact of revenues p of resources on society Can government meet economic and social expectations of � citizens and avoid macroeconomic distortions? � H How can we insure the equitable distribution of oil revenue i h i bl di ib i f il benefits throughout the country? � Emergence of new social problems (diseases, crime, labor migration, etc.) g , ) Risks of economic and commercial benefits limited to only a � small number of local companies/individuals 8

Sustainable Development Sustainable Development � What is sustainable Development? “ Sustainable development is a pattern of resource use that aims to meet human needs while preserving the natural i h d hil i h l environment so that these needs can be met not only in the present, but in the indefinite future. ” ( Wikipedia) p p � Can CSR help sustainable development in Africa?

CSR for Sustainable Development in Africa CSR for Sustainable Development in Africa Poverty Alleviation y Competitiveness, Investment Flows Investment Flows, Role of Business Role of Business Market Access CSR CSR Opportunities Opportunities Africa’s Weak & Economic Growth Challenges

Africa’s CSR Players Africa’s CSR Players C ompanies i C International Civil Standards Society Global Media Global Media Donor National Agencies Agencies G Governments 11

The Important of CSR The Important of CSR � For companies and governments CSR as a social investment CSR as a social investment � � Under the microscope of scrutiny by media, international NGOs � CSR = reputation and mitigation � � � For companies For companies License to operate � Ensuring rapid deployment � Zero disruptions Zero disruptions � CSR to demonstrate being reliable partner � Share common future � � For governments g Importance of public perception that government is managing � resources well and promoting the best interests of population 12

Ob Obstacles to CSR l CSR � Limited awareness of CSR � Limited awareness of CSR � Stakeholder demands and drivers � Codes of conduct perceived as a nuisance Codes of conduct perceived as a nuisance � Compliance seen to be costly � Reducing margins, lower prices and increased demands � Lack of skills, knowledge, expertise � Need for education, training � Inadequate consultancy expertise 13

CSR ‐ Multi ‐ Stakeholder Model CSR Multi Stakeholder Model � Address economic development p � Maximize utility gained from limited resources � Genuine cooperation between stakeholders Genuine cooperation between stakeholders � Understanding different stakeholder motivations � Ownership is not just a function of material resource contributions � Resource ‐ sharing & trust R h i & � Eliminating the causes of social and economic instability � Improving public health � Improving public health � Ensuring government commitment � Develop multi ‐ stakeholder partnerships based on Develop multi stakeholder partnerships based on ethical principles

CSR ‐ Multi ‐ Stakeholder Model, Cont CSR Multi Stakeholder Model, Cont � Use existing initiatives as hubs g � Secure resources from all stakeholders � Create resource inventories � Create resource inventories � Share knowledge and information � National coordination and monitoring i l di i d i i � Using sustainability as a competitive driver for market access and new market creation d k t ti � Building Africa’s education and economic systems 15

CSR Partnership CSR Partnership � Critical drivers for partnership � Growing understanding of potential opportunities � Building markets for the poor in a responsible manner � The role of technology in providing services to poorer communities communities Source: African Institute of Corporate Citizenship Source: African Institute of Corporate Citizenship 16

CSR ‐ Expanded Risk Management CSR Expanded Risk Management Poverty Environment Terrorism Disease Social Governance Geopolitical Regulatory Currency Misc. Misc. 17

Best Practice Considerations Best Practice Considerations � CSR as a business driver, support by upper management, pp y pp g backed by corporate endorsement � Long ‐ term perspective � � Collaboration among multiple parties or stakeholders Collaboration among multiple parties or stakeholders, leading to local “ownership” � Transparency and accountability � Joint decision ‐ making � Highest international standards � � Leveraged funding Leveraged funding � Community engagement – no handouts, but program budgets 18

Synergies from CSR Synergies from CSR � Agreed CSR framework between companies and national g p government � Linking expectation management, security, operational policies, environment, and CSR li i i t d CSR � Achieving buy ‐ in/endorsement from multiple stakeholders � Supporting growth of local organizations � Ensuring transparency and accountability in order to demonstrate openness, positive benefits � Treating communities as active decision ‐ makers 19

Conclusions � A number of core development issues in Africa are p already central to the corporate social responsibility (CSR) agenda. � They include labor standards, human rights, education, Th i l d l b t d d h i ht d ti health, child labor, poverty reduction, conflict and environmental impacts. � Corporate social responsibility can help deliver sustainable development in Africa. 20

21 Thank You!